-LRB- CNN -RRB- -- A most awkward and revealing situation has emerged in the heart of Europe , forcing European governments to choose between their principles and their fears , and drawing an uncomfortable gap between Europe 's words and its actions .

Last July , a bus carrying tourists about to start their vacation suddenly exploded outside the airport in the Bulgarian city of Burgas . The bombing killed five Israelis -- including a pregnant woman -- and a Bulgarian driver . This week , Bulgaria 's foreign minister blamed Hezbollah , saying an investigation showed the attack was carried out by two members of the Iran-linked Lebanese organization . Hezbollah denied the accusation . But Bulgaria says it discovered strong links , with `` data showing the financing and connection between Hezbollah and the two suspects . ''

The news shines a light on a most surprising fact : Hezbollah has been conducting business rather comfortably in much of Europe over the years , openly raising money for its operations . Those operations , according to countless investigations in a growing number of countries , include plotting and attempting to kill tourists , diplomats and others .

Washington , which labeled Hezbollah a terrorist organization in 1995 after a series of attacks in Lebanon and elsewhere that killed hundreds of Americans , has been pressuring the European Union to do the same . But the EU has resisted . The `` terrorist '' designation is more than a symbolic label . The label would allow European authorities to freeze funds , control the travel of Hezbollah operatives , and otherwise do what it can to prevent more loss of life .

The new secretary of state , John Kerry , urged the EU to `` send an unequivocal message to this terrorist group '' now that Hezbollah has been linked to an attack on European soil . American officials have told Europe that their inaction is `` making it harder to defend our countries . '' U.S. officials accuse Iran and Hezbollah not only of conducting attacks against civilians around the world , but also of actively supporting Syrian President Bashar al-Assad 's brutal repression at home in a conflict that has already left more than 60,000 dead .

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According to a new report from the Washington Institute for Near East Policy , authorities in various countries have uncovered and disrupted nearly 30 different terror plots by Hezbollah or Iran 's Quds Force , an arm of the Iranian Revolutionary Guard Corps , in the last couple of years .

But Europe , incredibly , continues to waver . EU foreign policy chief Catherine Ashton reacted to the news from Bulgaria with a clammy statement that there is a `` need for reflection . ''

Hezbollah operates in Lebanon as a powerful Shiite political party , social services organization and an intimidating , heavily-armed militia . It has strong support among the country 's Shiite population and bitter opposition from Sunnis .

EU officials say they fear destabilizing Lebanon , a country perennial teetering on the edge of sectarian violence . They also worry about angering Hezbollah , fearing attacks on European peacekeepers in Lebanon or terrorist attacks on European soil . Judging by recent events , that particular outcome was not prevented by their timid approach .

France , in particular , has resisted upsetting Hezbollah . Paris has taken the lead in fighting extremism in Africa , sending troops against militants in Mali and declaring that it is committed to `` a relentless struggle against terrorist groups . '' But it is somewhat less relentless when it comes to Hezbollah . The French take a special interest in protecting their influence in Lebanon , a former colonial holding .

A firm Western stance against the group , however , could strengthen Lebanon 's struggling pro-Western opposition , which blames Hezbollah for the assassination of many of its members , including former Prime Minister Rafik Hariri . A U.N. tribunal set up to investigate Hariri 's 2005 assassination indicted four Hezbollah members .

The pattern is well established . Argentinean prosecutors accused Hezbollah of carrying out and Iran of planning and financing the worst terrorist attack in that country , the 1994 bombing of a Jewish Community Center , which killed 85 and injured 300 .

Western experts generally agree with the assessment of the former U.S. homeland security secretary , who describes Hezbollah as `` the most potent terrorist organization in the world . '' The government of the Netherlands already declared it a terrorist group and Britain named its militant wing a terrorist entity , as if it were separate from the rest of the organization .

It is funded by Iran and closely coordinates its moves with Tehran . Over the years , it has been accused of carrying out attacks throughout the world , often in collaboration with Iran . In recent months , as tensions have risen between Iran , on one side , and Israel and the West on the other , Tehran and its Lebanese ally have stepped up their activities to a feverish pace , targeting Israelis diplomats and tourists in India , Cyprus , Thailand and elsewhere . Hezbollah and Iran were linked to a plot to kill the Saudi Ambassador in Washington .

Hezbollah 's protective ally , Iran , is enduring harsh economic sanctions from the West over its controversial nuclear program , and a number of Iranian nuclear scientists have been assassinated , as have a few key figures in the Hezbollah hierarchy . The circumstances of these assassinations have all been murky , but there is nothing vague about the bombing of buses full of tourists . By any definition of the word it qualifies as terrorism . And clearly , the question is not just symbolic .

Europe is letting Hezbollah operate on its soil . By some counts , there are 950 Hezbollah-affiliated individuals in Germany alone .

Europe wants to treat Hezbollah as a legitimate political organization , but the group 's actions place it squarely outside the realm of legitimacy . As long as Europe closes its eyes to this reality and allows the group to organize , fundraise and hold meetings , it is guilty not only of hypocrisy , but also of passive complicity in Hezbollah 's attacks on innocent civilians .

The opinions expressed in this commentary are solely those of Frida Ghitis

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Frida Ghitis : Bulgaria blamed Hezbollah in bus attack , yet EU still wo n't call group terrorists

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She says doing so would let EU freeze group 's funds , control its travel , averting attacks

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But EU fears angering group , destabilizing Lebanon ; let 's Hezbollah raise funds in Europe

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Ghitis : In letting group claim legitimacy , EU passively abetting a terrorist organization